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The California Solar Initiative set aside separate rebates for government and non-profit entities. Since they do not qualify for tax incentives or depreciation, the rebate was set at a higher level so as to give added incentive to go solar. Rebates decrease over time as more and more commercial and non-profit entities recognize the benefits of solar. For a list of the current rebate levels click here. Government and non-profit rebates come in two forms: an upfront rebate based upon the expected performance of your system. Systems under 30 kW in size may choose this form of rebate. Systems larger than 30kW must opt for a performance based rebate, paid out over five years. An option for this category of customer is a Power Purchase Agreement or PPA. A third party (for profit) purchases the solar system, and sells power back to the Government/non-profit at a reduced rate. After a period of time, usually fifteen to twenty years, the government/non-profit entity has the option to purchase the system at fair market value. Since the third party is for profit, it is able to take advantage of the tax credits and depreciation and pass that savings on to the govt./non-profit in the form of lower rates. To learn more about PPAs and how they can work for you please contact one of our Design Consultants or set up a free evaluation today. |